First loans from the African continent are available at the Bondster marketplace. The loans are issued by the Lime Loans South Africa company, a Lime Credit Group (LCG) subsidiary, headquartered in the Republic of South Africa. Apart from Africa and Russia, where this holding was founded, it runs its operations in Mexico and Poland. You can find LCG loans on Bondster originated by the Polish Lime Kredyt company and now also from the RSA.
„“The negotiations with the South African company were far from easy. However, we managed to agree on all terms of cooperation and successfully added the loans into our system. These are short-term loans to individuals where our investors can expect earnings of 13%,” says Jana Mücková, who is responsible for acquisition of new foreign loan originators in Bondster.
The South African loan originator Lime Loans South Africa (LLSA) was founded in 2015 and is now employing 10 people. To the moment it has issued loans worth about 4.5 million euro. In most cases, these are short-term loans with 5-35 day due period, the so-called payday loans. This reflects the fact that the African originator issues loans worth half a million euros a month. The most common loan volume issued by LLSA is between 300-5400 South African rand (ZAR), an equivalent of 20-300 euros. It issues about 4000 of such loans a month, with 75% to people who already took up a loan from the company in the past.
The money from Bondster investors will allow the company develop further and faster. Apart from perfectly automated lending process, the South Africans would like to invest in software development and improvement of the UX design while also gradually increasing the volume of loans provided per month.
The Republic of South Africa is one of the so-called BRICS countries, a group of large, fast-growing economies, which, apart from the RSA, includes Brazil, Russia, India and China. With its 55 million inhabitants, RSA is the 25. biggest country in the world. Its GDP ranks it among the world top three dozen countries. However, the economy of the Republic of South Africa is far from booming. Even though the government debt is relatively low, the country has been suffering from the decline of economic growth and high unemployment, with over a quarter of the working population being jobless.
RSA is very rich in natural resources, but it has no oil. On the other hand, the country has the biggest gold and platinum deposits in the world. An interesting fact about RSA is that it produces about two thirds of all the electricity in Africa and that there are the biggest thermal power stations in the world. From the banking sector perspective, the most interesting fact is that according to the Boston Consulting Group, 99.3% of all the loans in RSA are provided by non-banking financial companies. Which is one of the highest share of the non-banking financial sector in the world. Obviously, not borrowing from the bank is in the RSA something completely normal. This in turn creates an environment with a high proportion of illegal loan originators, among other problems. However, LLSA is a duly registered, licenced enterprise, which tries to eliminate usurers who do not abide the law from the market.
Author: Jan Schönbauer